Derq, a Detroit-based artificial intelligence transportation technology company, has received a federal contract from the U.S. Department of Transportation under the first phase of its Intersection Safety Systems initiative.
The contract will support the development and demonstration of AI-powered technologies capable of identifying, predicting, and mitigating dangerous traffic situations involving vehicles and pedestrians.
Derq was selected as one of three teams participating in the initiative and is the only private company among the selected participants.
The broader federal program includes $17 million in anticipated funding across two phases, with $5.5 million awarded collectively to the three participating teams for initial prototype development and testing.
An additional $11.5 million is anticipated for the second phase, which would involve further development and evaluation of the systems at operating intersections.
Derq’s technology uses artificial intelligence and sensor fusion to analyze road conditions and identify potential collisions before they occur.
The platform combines real-time camera footage, other sensor information, traffic signal data, and vehicle-to-everything communications to develop a comprehensive understanding of traffic activity.
By processing information at the roadside, the system can assess vehicle movements, pedestrian behavior, and other conditions that may indicate an emerging safety hazard.
For example, the technology can identify situations involving a vehicle approaching a red light without slowing or a pedestrian entering a roadway.
When a potential conflict is detected, the system can issue warnings, activate roadside signs, or adjust traffic signals to help reduce collision risks.
Derq’s technology is supported by a portfolio of 23 patents covering sensor fusion, prediction of road-user intentions, vehicle-to-everything communications, and real-time collision mitigation.
The company will demonstrate its technology at the Virginia Tech Transportation Institute’s Virginia Smart Roads facility and the Texas A&M Transportation Institute’s RELLIS Proving Grounds.
Public-sector partners include the Texas Department of Transportation, the City of Houston, the Virginia Department of Transportation, and the Virginia cities of Alexandria and Falls Church.
Additional industry participants include WSP USA, the Intelligent Transportation Society of America, and AT&T.
The testing program is intended to evaluate how advanced technologies can be incorporated into transportation infrastructure to support more proactive traffic management.
Derq’s selection follows its participation in the U.S. Department of Transportation’s earlier Intersection Safety Challenge, conducted between 2023 and 2025.
The company received recognition as a Tier 1 winner in Stage 1B of that initiative, which evaluated AI and sensor-based approaches to real-time intersection safety.
Traffic crashes remain a significant public safety concern. Derq cited an estimated 36,640 traffic fatalities in the United States during 2025, with intersections accounting for approximately 18% of pedestrian fatalities.
The company’s technology is designed to supplement existing transportation safety measures by identifying dangerous conditions as they develop rather than relying exclusively on historical crash information.
Founded in 2016 as a Massachusetts Institute of Technology spinoff, Derq develops intelligent transportation systems used in the United States, Canada, and Gulf Cooperation Council countries.
The new USDOT contract will allow the company to demonstrate its predictive safety capabilities alongside transportation agencies and research institutions as federal officials evaluate next-generation intersection safety technologies.
KEY QUOTES:
“Most systems today tell you what happened. Ours also predicts what’s about to happen and acts on it. As the only private company selected for this USDOT program, with technology already running at intersections across the country, Derq is ready to prove that real-time crash prevention can become part of everyday traffic operations and protect communities at scale.”
Dr. Georges Aoude, Co-Founder And CEO Of Derq
